Committee approves first step of four-year benefit modification to reduce plan costs

Chief Financial Officer Nisha Bamberg presented a proposed multi-year benefit-modification plan that would incrementally raise deductibles and maximum out-of-pocket limits for individual and family coverage over four years. The committee approved the first step: an immediate $125 increase to the individual deductible and a $250 increase to the family out-of-pocket maximum as year-one of the plan. Why it matters: Bamberg said the changes are intended to improve the fiscal sustainability of the district's self-insured health plan without imposing a single, large one-time increase on employees. She told the committee that, based on last year's claims, the first incremental step is expected to produce about $600,000 in savings. Details: Under the proposal, the full four-year change would have included a $500 total increase in individual deductible and a $1,000 increase in family max out-of-pocket, phased at $125 and $250 in year one respectively. Bamberg emphasized that approving the first-year step does not automatically commit the district to subsequent increases; each subsequent step would come back for committee review before implementation. Committee members pressed on impacts for retirees and lower-income employees; one member said he opposed decreasing benefits for retirees but acknowledged staff would consider restoring funds to employees in later years if district finances allow. The vote to recommend the first-year change to the full board was unanimous. Next steps: Staff will move forward with year-one changes, evaluate plan performance, and return to the committee before any further annual increases.